Good Mortgage Broker Vs Bad Mortgage Broker

Good Mortgage Broker vs .​
Bad Mortgage Broker
According to​ the​ NAMB (National Association of​ Mortgage Brokers),​ two out of​ three Americans work with a​ mortgage broker to​ purchase a​ home because of​ the​ broker’s expertise and wide selection of​ loan products and lenders .​
However,​ with so many so called experts out there,​ how does one separate the​ wheat from the​ chaff? How do you​ know if​ a​ broker is​ honest? And how do you​ know they're an​ expert or​ not?
The NAMB says that over 70 percent of​ brokers are legitimate,​ that is​ they have safeguards and policies in​ place to​ make sure that they stay on​ the​ straight and narrow .​
So what about the​ other 30 percent? Well,​ the​ whole 30 percent isn’t bad,​ but just as​ in​ any classroom,​ you’re going to​ have those at​ the​ top,​ some in​ the​ middle,​ a​ few at​ the​ bottom,​ and others who simply don’t show for class .​
Obviously,​ those at​ the​ bottom and the​ no shows would not be your first choice if​ you​ were going into surgery and they were holding the​ scapel,​ nor should they be handling your loan when you​ purchase a​ home or​ refinance.
Because of​ the​ surge in​ numbers of​ mortgage brokers in​ the​ past few years,​ there are plenty of​ incompetent and dishonest brokers out there .​
In order to​ avoid the​ 30 percentile,​ I​ offer the​ following tips to​ help you​ find a​ mortgage broker that is​ not only an​ expert but honest and reputable as​ well:
1. Don’t believe everything you​ hear .​
Asking friends or​ family to​ recommend a​ mortgage professional is​ usually the​ first place people start .​
However,​ how do they know the​ broker is​ reputable and trustworthy? Check with your state regulatory offices and licensing bureau once you​ have some referrals .​
Better to​ be safe than sorry.
2. Use an​ NAMB certified mortgage broker .​
Brokers certified by the​ NAMB practice the​ highest ethical and professional standards in​ the​ industry .​
There is​ a​ Find a​ Broker link on​ the​ NAMB’s website at​ .​
3. Use an​ Upfront Mortgage Broker (UMB) .​
These brokers disclose their fees to​ customers in​ writing in​ advance at​ the​ customer’s request .​
They also disclose the​ wholesale prices they receive from lenders .​
For a​ list of​ UMBs visit
4. Honesty is​ the​ best policy .​
If a​ mortgage broker suggests that you​ lie on​ your loan application in​ any way,​ he/she is​ most likely in​ the​ 30 percentile .​
Walk away.
5. They need to​ show you​ the​ money .​
If a​ mortgage broker doesn’t disclose your closing costs in​ three business days,​ it’s probably best to​ take your business elsewhere.
6. If you’re not bleeding,​ they shouldn’t be applying pressure .​
a​ mortgage broker who pressures you​ into anything you​ are not comfortable with probably failed ethics .​
No reputable broker will pressure you​ into anything you​ don’t feel comfortable with.
7. There are no stupid questions .​
Does the​ mortgage broker answer all your questions to​ your satisfaction? Are his/her answers straightforward,​ honest,​ and respectful?
8. Do you​ have a​ reservation? If you​ feel comfortable with whom you’re working with and feel like they have answered all your questions and put all your reservations to​ ease,​ you’ve probably found a​ good mortgage broker.

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